This evaluation guide resulted from a 2-year project that conducted literacy audits at 10 manufacturing companies, assessed 3,291 workers, developed customized assessments and curricula, and provided 104 courses to 948 participants in the Chicago area. The guide is a hands-on resource to assist companies, unions, or educational agencies in setting up a system for measuring the effectiveness of a basic skills program. Using examples from the project, the guide covers the following topics: (1) the need for basic skills in the manufacturing industry; (2) issues in evaluating basic skills programs; (3) program evaluation; and (4) the four levels of program evaluation (reaction, learning, transfer of learning, and organizational impact). Samples for conducting each level of program evaluation are provided. Contains 11 references. (KC)